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Prepare a cash flow statement for XYZ Company, using the indirect method. Complete a cash flow/statement of changes in financial position for XYZ Company for

Prepare a cash flow statement for XYZ Company, using the indirect method. Complete a cash flow/statement of changes in financial position for XYZ Company for 2012, given the information below:

 

XYZ Company Balance sheet December 31, 2012
December 31
Assets 2012 2011
Cash 63,000 22,000
Accounts receivable 85,000 76,000
Inventories 180,000 189,000
Land 75,000 100,000
Equipment 260,000 200,000
Accumulated amortization (66,000) (underline) (42,000) (underline)
Total 597,000 (double underline) 545,000 (double underline)
Liabilities and equity
Accounts payable 34,000 47,000
Bonds payable 150,000 200,000
Common shares 214,000 164,000
Retained earnings 199,000 (underline) 134,000 (underline)
Total 597,000 (double underline) 545,000 (double underline)
 

Additional Information: Net income for 2012 was $125,000. Cash dividends of $60,000 were declared and paid. Bonds payable with a carrying value of $50,000 were redeemed for $50,000 cash. Common shares were issued for $50,000 cash. Land was sold at a gain of $5,000. Net sales for the year were $978,000. 

"XYZ Company, a manufacturing firm, is seeking a comprehensive financial analysis for the fiscal year ending December 31, 2012. As part of this analysis, you are tasked with preparing a detailed cash flow statement using the indirect method and a comprehensive statement of changes in financial position,

 outlining the changes in the company's financial standing over the course of the year and highlighting the impacts of key transactions and events.

 

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